- CFA Exams
- CFA Level I Exam
- Topic 1. Quantitative Methods
- Learning Module 8. Hypothesis Testing
- Subject 7. Test of a Single Mean
CFA Practice Question
As sample size increases, ______
A. critical values for t decrease.
B. degrees of freedom decrease.
C. confidence interval width increases.
Explanation: As sample size increases, degrees of freedom increase and critical values for t decrease. Thus, the amount added to or subtracted from the sample mean to create the confidence interval will decrease. Therefore, confidence interval width will decrease.
User Contributed Comments 4
| User | Comment |
|---|---|
| aakash1108 | degrees of freedom increase, critical values decrease! |
| rrichmondo | makes sense |
| showmethemoney | nice question |
| yassine | An increase in sample size would decrease the standard error. As a result CV decreases |